State pension age rise could be delayed

Plans to bring forward a rise in the state pension age which were expected to be announced in May have been put on hold, according to newspaper reports The Financial Times said ministers have delayed a decision amid fears of a backlash from middle-aged voters. The state pension age is due to rise due to 68 from 2044, but it has been rumoured that ministers wanted to bring that forward – potentially to as early as 2035 – with an announcement expected in May. The FT today suggested that ministers have now decided to delay a decision until after the next general election, which is expected to be held in little over a year’s time. The move is partly in response to falling life expectancy rates in the UK, the paper said. A Department for Work and Pensions spokesman said: “The Government is required by law to regularly review the state pension age and the next review will be published by May 7.” Nigel Peaple, director of policy & advocacy at the PLSA, said: “If it’s true that the government has decided to not bring forward the date at which the state pension age will rise to 68, it is a very positive step for future pensioners because the state pension makes up the majority of retirement income for most people. "Moreover, increases in the state pension age fall disproportionately on people with lower incomes who generally have poorer longevity.” Jon Greer, head of retirement policy at Quilter, said: “The Tories understandably look determined to try and claw back some public favour among its core voters by delaying its widely anticipated state pension age increase. “The rumours come just as Boris Johnson faces a grilling over his partygate antics putting those lockdown scandals back at front of mind for many. “Any increase would have proven incredibly unpopular whichever way you cut it. We may see more of these crowd-pleasing policies as we head towards the general election.” The plan to delay has been reportedly due to average lower life expectancy. However, it is forecast that the number of people over state pension age will grow significantly over the next 20 years while the proportion of the working age population to support them will start to fall. Mr Greer said: “The delay to increasing the age therefore does put the state pension’s long term sustainability into the spotlight and this could be the government simply kicking an inevitability down the road for the next party to take government to deal with.”

State pension age rise could be delayed

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